In recent years there has been a huge spike among consumers for digital content. With increased data speeds and deep penetration of high-speed internet, the online platforms provide easy access and great depth. This change in consumer behavior has led to an increase in subscription-based digital services. A subscription-based model comes with a great opportunity as it ensures repetitive sales, but it also comes with enormous challenges in managing and increasing your subscribers.
What is Subscription Management Software?
A subscription is any product or services that are provided on a monthly or weekly basis. As easy as it sounds, managing this subscription-based model is not that easy. In a subscription-based model, service providers have to deal with multiple domains at once. It includes billing, generating invoice, keeping track of the building report, monitoring deliverables, and much more. To manage this revenue stream, subscription-based management systems help in maintaining a smooth supply chain and operations.
Attributes of a Subscription management Platform
A subscription management platform provides an easy and effective solution for your business. It handles renewed subscriptions, delivery, and schedule of agreed-upon services or products along with various services such as customer assistance, payment gateway software, catalog management, and other essential services. A good platform must comply with the following requirements.
Store payment data and customer information
Good subscription management software must store all the payments and related data like credit cards and other details such as preferred modes of payment so as to enable easy transactions and a smooth customer experience.
Automate contracts and billing schedules
Renews contracts in automated modes and provides customers with easy billing schedules. A customer should never have to wait for a payment schedule and must be communicated well in advance.
Support and integrate payment gateways
It is essential that subscription management service must support payments and that too across all payment gateways.
Accommodate various modes of payments
There are often multiple modes of payments that customers can prefer. This entirely depends on the availability and ease of the payment method. Accommodation of various payment modes is a essential
Send reminder e-mails to the customers
In a subscription based model, always being in touch with the customer is essential. Sending Emails and educating the customers about new products, discounts and payments is essential.
Subscription Management and Growth
Increase Subscription Revenue:-
A subscription-based process should be smooth, right from subscribing for the services to delivery. This helps create trust and increase word-of-mouth subscriptions. Ask yourself how many customers have you left your service because the customer service experience has not been great? Even though the product was good! small errors can cause loss of trust and subscribers.
Frictionless Billing Experience:-
- A smooth and error-free billing experience is important. A lot of times an insecure payment gateway and frequent errors in payment links can cause mistrust among your subscribers.
- The subscription-based management software must be integrated with multiple payment options that allow the business to pay in their preferred payment method. For example, accepting payments in a different country's currency. Payment companies like “Stripe” provide an option to accept payment through digital wallets.
With a subscription management software you can add a new product and service easily which would have taken a lot more time manually. Adding new products or features with just a few clicks is a great add on because it is already optimised.
Test New Strategies:-
To create a USP or to attract new customers/subscribers towards the business, many companies use different strategies but to do that the company has to restructure the business model.